FAST enters Golden Cross for the first time since April 21st
Fastenal Company (FAST) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, FAST ended the week -0.62% lower at 38.68 after edging lower $0.03 (-0.08%) today on low volume, slightly underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (FAST as at May 22, 2020):
Friday's trading range has been $0.42 (1.09%), that's far below the last trading month's daily average range of $0.97. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for FAST.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After having been unable to move lower than 38.52 in the previous session, the market found buyers again around the same price level today at 38.50.
Though Fastenal is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish. With its 50-day moving average crossing above its 200-day moving average, the share has entered a so-called "Golden Cross" for the first time since April 21st. Showing increasing upward momentum in the short and medium-term the "Golden Cross" is known to indicate a potential bull market on the horizon. When the last "Golden Cross" happened on October 16, 2019, FAST gained 1.15% on the following trading day.
Buying might accelerate should prices move above the close-by swing high at 39.58 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Golden Cross" stand out. Its common bullish interpretation has been confirmed for Fastenal. Out of 9 times, FAST closed higher 66.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.56% with an average market move of 1.91%.